NASCAR Enters Prime Time

NASCAR Enters "Prime" Time

Over the next 20 years the France family continued to capitalize on its momentum by focusing on the customer experience, whether that customer was a corporation or a racing fan.

Propelled by superstars such as Petty in the 1980s, and Dale Earnhardt and Jeff Gordon throughout the 1990s, the sport boomed in popularity and found itself with the most brand-loyal fans in all of sports. Research indicates that approximately 70 percent of NASCAR fans consciously choose NASCAR sponsors' products over other brands. The reason for the NASCAR fan brand loyalty is that fans know that the sport wouldn't exist without sponsors, and their driver couldn't compete if he or she didn't have money from a sponsor.

This fierce loyalty has enabled NASCAR to secure more than 900 sponsors that, at the beginning of 2001, were investing $400 million in the sport. Because of this sponsor and fan loyalty and the fact that NASCAR doesn't have strikes or lockouts like the rest of the major sports leagues (there is no "players union" in motorsports), it was able to negotiate a six-year, $2.8 billion television contract with Fox, NBC, and Turner, as well as a five-year Internet rights deal with AOL for a reported $100 million. On the merchandising front, NASCAR has entered into merchandising deals with more than 45 companies, which has allowed it to increase its licensing revenue from $80 million less than 10 years ago to more than $1 billion today, thanks in large part to its themed restaurants and die-cast collectible cars, among other licensing initiatives. NASCAR, once a fledgling regional business, has grown to become an international sport because it keenly focused on its customers and what they sought from their affiliation with racing.



On the Ball. What You Can Learn About Business from America's Sports Leaders
On the Ball: What You Can Learn About Business From Americas Sports Leaders
ISBN: 013100963X
EAN: 2147483647
Year: 2003
Pages: 93

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